Elements of Tax
Entities – tax versus legal
• Tax entities
o People, partnerships, joint venture, companies … are considered to be entities for the purposes of calculating income tax.
• Legal entities
o Companies, which have separate legal personalities, are legal entities.
• Income should be considered as a cash flow stream, where timing is important.
• The question is, when the income recognised as earned or deducted (because tax delayed is tax denied)?
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